Implicit in the mind of a predator is the belief in the ideal of no-contest. In effect it becomes an undeniable amassing of overwhelming hubris that when merged with a willing accomplice effectively licenses conquest of any target of imagination. In the Blind-Vision Series I referred to a variant of this process as Legislative-Coercion.
Take for instance the Wall Street Reform Act (WSRA) that was passed in July of 2010 as a perfect example. Moreover, as public concern over the explosion in food and fuel pricing and the progressive erosion of their finances grows, it would seem a perfect opportunity to perform a bit of dot-connecting to illustrate a few key points of culpability and provide a few relevant comments which I believe you will find of great interest. Seems the media will tell you that prices are rising but none seem interested in explaining why. I of course, will!
Let me introduce two foundational points:
- As in the case of Crude Oil, Commodity (the basics of food products and organic components) pricing is rarely (any longer) a function of supply issues.
- Trading in Commodities (from this point on I will use this term in a general sense and inclusive of both Crude Oil, Gold, Silver as well as the entire board of faire posted on the Commodity & Futures Indexes) is no longer the mechanism whereby Industry attempts to stabilize the cost of their base product components. As you will soon see, it has become something quite different.
Over the last forty or so years this Country has gone through a profound reformulation in its economic system. We have witnessed the complete destruction of a fundamental wealth-creating economic model and in its place has risen what has become known as the service-based economy and along with it, The Elite Robber-Baron. The corporatized and synthetic progeny of the 19th Century Industrial Wizard; only this new edition creates nothing, produces nothing and inspires nothing. Yes, this Elite is merely an aggregator of opportunity created solely from their ability to advantage themselves by voiding the self-regulating notion of probity and engaging the thallic legislator to formalize their cycle of predation. To illustrate how, let us return to Mssrs. Dodd & Frank and their elaborate Act to which I previously referred.
Among the many forms of malfeasance on exhibit in the Wall Street Reform Act (WSRA), orchestrated by the Bank of International Settlements and the entitled Western Banking Cabal, I will only draw your attention to the most conspicuous components directly related to the facilitations favoring The Elite. They are as follows (in no particular order):
- The WSRA places the Commodity Futures Trading Commission (CFTC) under the jurisdiction of The Federal Reserve Bank.
- The WSRA formalizes Derivative/Swaps trading which now transacts under the domain of the CFTC.
- The WSRA, through various and deliberately vague regulations, now permits Financial Institutions (through their “Nonbank Financial Entities”) to openly trade in the Commodity & Futures market.
- In fact, the WSRA goes so far as to state “…nonbank financial companies are not required to conform to the activities restrictions in Section 4 of the Bank Holding Company Act.”
- You may be wondering what are the activities defined in Section 4 of the Bank Holding Company Act? They are defined as “…activities that are ‘financial in nature’….”
So then in addition to centralizing the entire financial system of the United States under the dubious construct that is the Federal Reserve, the WSRS also openly licensed this very same financial systems ability to wage a speculative war of predation upon the Commodity & Futures market as well.
The result: Since October of 2010, Commodity Prices have risen approximately 31.5% and thus both the reason and cause for the rise in food and oil/gas prices. I will ignore the affects of government meddling (Ethanol Credits/Grants) in Grain Markets as the facts in evidence clearly indicate they’ve had their negative effect as well.
Much as it was for AIG, Bank of America, Bear Sterns, Solomon Bros, Merrill Lynch, Countrywide, Standard & Poors, CitiGroup, the Fed and so on who used much of the same types of Elite Ethics of Opportunity to pillage the financial structure of the U.S., the same mechanisms have been positioned for the process to occur, all over again. After all, why would a Bank need to invest in the U.S. Economy when they can profit, with much less risk, in its destruction.
I could go on and on about the JP Morgan & HSBC manipulations in the Gold markets and the Billions of Dollars being made by various Banks by way of the Government arranged TARP program and, I might add, at the expense of the U.S. Taxpayer and Homeowners however it would only be more of what you’ve already come to expect from Washington. Still, I continue to be completely unable to comprehend the mind of an Individual or Institution that would so willingly cause suffering to the American People.
There is no advantage to the Commodity & Futures markets that would give reason to permitting speculation of this type. This accommodation is a complete breach of market function and further adds to the growing collection of substantive reasons for why Americans increasing loathe their Government, Political Operatives and the Elite in all their purulent forms.
Immediate action should be taken to strike the practice from the processes of market operations. Among the possible options, the following should be considered:
- Eliminate Corporate Farm Subsidies and all Targeted Ag-Tax Credits.
- Prohibit speculation in Commodities/Futures Markets and restrict trading to commodity-specific industries.
- Prosecuting “traders” who speculative practices trigger price-inflation/manipulation.
- Restrict speculative trading to “excess” supply only.
- Place punitive surtax on profits generated from speculative trading.
The Elite Robber-Baron, like their enabling companion the Political Elite, loathe both the Free-Market Forces of Capitalism and the Market-Forces of Freedom. They prefer instead to orchestrate the Market-Forces of Coercion and Divisive-Advantage and to perfect their ability to do so unopposed.
“For in the market-place one dusk of day, I watch the Potter thumping his wet clay; and with its all obliterated tongue it murmured, gently, brother, gently pray!”
Yes Omar Kayyam’s words express the clay’s desire for the Potter to make something magnificent out of the great potential that its unformed features offer. The clay appeals to the Potter to seek divine inspiration to insure the best possible outcome. I too share the same hope for the unformed mess we find ourselves in. Yes, “…gently, brother, gently pray!”
Curtis C. Greco, Founder